Airlines now face $25,000 fine if they fail to reveal total ticket price

Transport Canada: Airlines face fines if they fail to reveal full fare

The federal government implemented new rules Tuesday that will force airlines and air service providers to advertise the all-in price of airfares, including all taxes and fees, under threat of fines for failing to do so.

The new regulations are aimed at putting an end to the common practice in Canada of advertising fares, excluding certain taxes and fees, that are often hundreds of dollars less than the price paid by consumers. The rules require advertisers to include the all-in price in all media, including online, print, broadcast and billboards, for flights originating in and flying between points in Canada.

Federal transport minister Denis Lebel said the regulations will ensure consumers know what they’re paying up front and will not not be hit with hidden fees.

Failure to abide by the guidelines could result in fines of up to $25,000 for repeat offenders, he said.

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“These regulations are now the law of the land,” Mr. Lebel said in a speech at Toronto’s Pearson International Airport. “The changes are not only good for consumers, they will also create a level playing field with fair competition between all advertisers in the industry.”

The amendments to the country’s Air Transportation Regulations were promised to be law by the end of 2012 by Mr. Lebel last December after consultation with the industry’s various stakeholders and the public.

The National Airlines Council of Canada, which represents some of the country’s largest airlines, including Air Canada, WestJet Airlines Ltd., and Air Transat, said they welcomed the new regulations. Many of its members have moved to an all-in advertising model since the consultation process began.

“The new framework is a good example of industry and government working together,” said George Petsikas, NACC president. “We are pleased that the new rules provide clarity, maximize transparency and ultimately help the consumer make informed decisions.”

The new rules will not, however, apply to so-called “optional services,” like charges for checked bags or the cost of meals and drinks, that consumer are not required to purchase to complete their flights, Mr. Lebel said. But advertisers will be required to make consumers aware of the cost of these additional services.

Jacqueline Bannister, a spokesperson for the Canadian Transportation Agency, which will monitor and enforce the rules, said the new rules will only apply to advertisements for flights originating in or flying between two points in Canada. They will not apply to those originating in other countries and flying into Canada, she said.

But she noted the regulations harmonize with similar all-in advertising rules implemented in Europe in 2008, and in the U.S. earlier this year.

Olivia Chow, the federal NDP transport critic, said she applauded the new regulations after her party advocated for the changes for years.

Unfortunately, she said, Canadian travellers continue to wait for similar changes when it comes to cancelled flights, misplaced luggage and high airport fees, and she said her party would like to see a passenger bill of rights implemented in Canada to address those issues.

“All-in pricing is a step forward, but what we need is comprehensive protection for air travellers,” Ms. Chow said in a statement. “As the holidays approach, countless Canadians will suffer from delays, cancellations and lost luggage — they should receive compensation.”